OSAKA (Kyodo) Daikin Industries Ltd., Japan's largest maker of air conditioners, is planning boost production capacity in Europe, company officials said Wednesday.
The move includes 4 billion yen to build a factory for key air-conditioner components, they said.
The plant, likely to be situated in the Czech Republic, will be capable of producing 300,000 to 500,000 compressors annually, they said. A compressor is the heart of an air conditioner.
Construction work is expected to begin later this year. Daikin wants the new factory to become operational by the end of 2005.
Daikin has decided to boost its output in Europe in anticipation that soaring local demand for air conditioners will continue, they said.
Demand grew sharply in the wake of last summer's heat wave, which resulted in many casualties, especially among senior citizens.
Daikin already has a plant in the Czech Republic that is slated to begin producing indoor parts for residential air conditioners in April.
It has decided to produce the outdoor components at the same plant, and will install equipment for it by September, the executives said.
The plan will bring the total investment in the plant to 2.7 billion yen, double the initially projected sum, they said.
It will be capable of producing roughly 300,000 air conditioners a year, they said.
The Osaka-based company may also acquire air conditioner sales companies in Portugal and the Netherlands later this year, following its purchase of two air conditioner sales firms in Britain last year, they said.